Bulgaria’s Cabinet said on July 15 that it has submitted the memorandum updating the treaty on double taxation and tax avoidance with Romania, signed in April, for ratification in the country’s Parliament.
The updated treaty replaces the current agreement, signed in 1994, and is in line with the guidelines of the Organisation for Economic Co-operation and Development. It will apply an entirely new model of distributing the tax burden, which will help improve bilateral relations, stimulate economic co-operation and investment, the Government’s press service said, without giving further details.
Although ratifications of tax treaties in Bulgaria’s National Assembly are seen as routine parliamentary business and passed without debate, it is also among the type of legislation that can get sidetracked if other, more pressing business, takes precedence. As such, there is no certainty that the ratification bill will be passed before the current session of Parliament ends later this month.
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(Photo of Bulgarian Parliament: Clive Leviev-Sawyer)